CMA CGM freezes spot rate increases

by | 10 Sep 2021 | International News

Amid rising antagonism against carriers over skyrocketing freight rates, shipping major CMA CGM announced yesterday that it would stop all spot rate increases with immediate effect (September 9) to February 1, 2022.

The Group has said it is prioritising its long-term relationship with customers.

“Since the beginning of 2021, container shipping spot freight rates have continued to rise due to port congestion and the major imbalance between demand and maritime container transport capacity,” the line says.

“Although these market-driven rate increases are expected to continue in the coming months, the Group has decided to put any further increases in spot freight rates on hold for all services operated under its brands (CMA CGM, CNC, Containerships, Mercosul, ANL, APL).”

CMA CGM is also investing heavily to strengthen its service offering, it says. “The Group has increased the capacity of its operated fleet by 11% since December 31, 2019, through the addition of new vessels and the purchase of second-hand vessels. Over the last 15 months, the Group has also increased its container fleet by 780 000 TEUs.”